Average full-time earnings soared in 2021. Are good days back for Aussie job seekers?

Highlights 

• The previous year ended with a record-low unemployment rate.
• The average weekly ordinary time earnings for full-time adults increased 2.1% annually to AU$1,748.40 in November 2021.
• Female full-time workers saw a larger uptick in weekly wages than males over the six months to November 2021.

 

Australia seems to be in the middle of a widespread economic resurgence as major economic indicators have been showing considerable improvement in recent months. The economic revival is also evident in the labour market, which is slowly recouping to the pre-pandemic stage.

The Australian Bureau of Statistics (ABS) data reveals that the year 2021 ended with a record-low unemployment rate. The decline in the jobless rate was followed by a rise in wages, depicting an overall switch to better working conditions.

Lately, the ABS released estimates of average weekly ordinary time earnings for full-time adults, which increased 2.1% annually to AU$1,748.40 in November 2021. The total weekly earnings for all types of employees surged 3.8% over the year, reaching an average of AU$1,328.90.

DO NOT MISS: Australia sees strong wage growth in December 2021 quarter

The results came shortly after the recent release of Wage Price Index data for December 2021. According to ABS experts, the earnings data is in-line with the large annual increase of 2.3% observed in the Wage Price Index in December 2021. Though the current data is for mid-November, it demonstrates the significant economic turnaround that took shape during the end of 2021.

A closer look at the data

Average weekly ordinary time earnings for full-time adults in the public sector took a steeper path upwards than private sector earnings. This trend defied the pattern observed in the Wage Price Index data, in which private sector wages were relatively ahead.

Among all industries, weekly earnings in the mining sector were significantly higher than in other industries, with full-time workers getting paid AU$2,656.30 on average. However, experts highlighted an upward pressure on average full-time earnings over the last six months, specifically in some higher-paying industries, including construction, information media and telecommunications, and financial services.  

Job ads tumble while Australia remains in dire need of skilled, unskilled workers

These industries have thrived during the end of 2021, potentially due to gradually easing restrictions and high consumer demand. Specifically, the rise in construction and financial services sectors can be linked to the housing market boom undergoing in Australia.

As consumer demand was overwhelmingly high in the housing sector, construction and subsequent activities picked up with many government-backed projects on the move.

The recent reports suggest a large uptick in costs related to the construction sector. Meanwhile, the soaring demand for construction services has left the sector in a tight space. Subsequently, the government has provided wage subsidies for employers to take on apprentices.

Higher weekly earnings for females

As per ABS, full-time female workers saw a larger uptick in weekly wages than males over the six months to November 2021. More precisely, average weekly ordinary time earnings for females rose by 1% to AU$1,591, higher than for males (0.5% up to AU$1,846). Despite the higher jump, wages for females lagged far behind those of males.

The previously released hourly earnings data showed that men earned more than women in all occupation groups. Thus, the recent data can be taken as a breath of fresh air, despite a large gap still left to be filled.

The average weekly ordinary time earnings for full-time employees were higher in the Australian Capital Territory than all other states, standing at AU$1,981. However, weekly earnings were lowest in Tasmania and South Australia at AU$1,542 and AU$1,591, respectively.

ALSO READ: What does Russia-Ukraine conflict mean for world economy?

Bottom Line

While the data gives workers a reason to rejoice, inflationary pressures building in the backdrop might dampen the excitement. Inflation has been soaring high in Australia, largely because of international factors. Thus, little can be done domestically to help the nation come out of an inflationary spell in the long term. Meanwhile, the recent growth in wages does not match up to the rise in inflation.

INTERESTING READ: Is Australia facing ‘Great Resignation’ in workforce like the US?